Stock Market Watch

McDonald’s Corporation’s (MCD) Q3 Increases on Account of Higher Smoothies Sales

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McDonald’s Corporation (NYSE: MCD) has reported 10 percent increase in its third quarter net income. The company surpassed the analysts expectations and registered $1.39 billion in earnings for the fiscal third quarter of the year. The fast food chain’s per share earnings stood at $1.29, up from $1.15 per share it had earned last year.

  • McDonald’s revenue for the quarter increased 4.3 percent.
  • McDonald’s recorded $6.3 billion in revenue for the quarter.

McDonald’s had earned $1.26 billion during the third quarter of the year. The consensus estimates for the earnings were pegged at $1.25 per share and the revenue was expected to be $6.23 billion.

McDonald’s reported 6 percent increase in sales at its global stores opened more than 13 months ago. However, the rate of such increase for the US stores stood at 5.3 percent and 4.1 percent for the European stores. Asian and Middle East and Africa stores reported 8.1 percent increase. McDonald’s have increased its menu offerings in the US. It has also augmented its operations in Europe.

McDonald’s also reported healthy improvement in the sales of its fruit smoothies and frappes. The company has increased its operating hours in Europe.

McDonald’s Corporation franchisees and operates McDonald’s restaurants.

Key Financial Stats

Valuation

  • Price/Earnings(TTM)17.60
  • Price/Cash Flow13.60
  • Price/Sales (TTM)3.49
  • Price/Book6.27

Financial Strength

  • Quick Ratio (MRQ)1.00
  • Current Ratio (MRQ)1.20
  • LT Debt to Equity (MRQ)0.78
  • Total Debt to Capital (MRQ)0.81
  • Return on Equity36.50

Assets

  • Asset Turnover0.80
  • Asset per Employee8873.51
  • Inventory Turnover132.00

Per Share Data

  • Earnings (TTM)4.39
  • Current P/E Ratio1.20
  • Cash Flow5.69
  • Annual Dividend2.44
  • Book Value12.34
  • EBITDA30.80

Profitability

  • Market Cap4.39
  • Gross Margin (TTM)44.90
  • Operating Margin (TTM)30.80
  • Profit Margin (TTM) 20.30

Management Effectiveness

  • Return on Equity (TTM)36.50%
  • Return on Assets (TTM)16.70%
  • Return on Investment (TTM)20.50%



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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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